If You Only Do One Thing — Invest $100 In a Total Stock Market ETF

If you’re feeling overwhelmed about investing and don’t know where to start, let me make it dead simple:

Open a brokerage account and invest $100 in a Total Stock Market ETF.

That’s it. It’s that simple!

Why Investing in a Total Stock Market ETF Works

A Total Stock Market ETF gives you exposure to thousands of U.S. companies in one go. No need to pick individual stocks or worry about which companies will perform best. When you invest in a total market ETF, you own a small piece of the entire market.

What’s an ETF?

An ETF (Exchange-Traded Fund) is essentially a basket of stocks. It trades just like a stock but contains shares from many companies inside it.

Why Total Stock Market ETFs Are a No-Brainer

• Instant Diversification – Your money is spread across thousands of companies
• Low Fees – Most total stock market ETFs charge less than 0.1% in annual fees (traditional portfolio managers charge about 1% and I don’t think they’re worth it)
• Market Growth – It grows as the market grows, which historically has been around 10% annually over the long term
• No Research Needed – No need to spend hours researching individual stocks
• Trusted by Millions – Used by some of the most successful investors around the world

The Best Total Stock Market ETFs to Consider

Here are some of the best Total Stock Market ETFs to consider investing in:

• VTI – Vanguard Total Stock Market ETF
• SCHB – Schwab U.S. Broad Market ETF
• ITOT – iShares Core Total U.S. Stock Market ETF

They all track the same underlying index, so you can’t go wrong with any of them.

How to Start Investing in 10 Minutes

1. Choose a Brokerage Account: I recommend either Charles Schwab if you want checking and investing all in one place or Robinhood if you just want a quick investment account. Both are beginner-friendly and easy to use.
2. Open a Brokerage Account: Make sure it’s a regular brokerage account (not a retirement account) to keep things simple.
3. Link Your Bank Account: Connect your bank account for easy deposits.
4. Deposit $100: Start small and see how it feels.
5. Buy Your First ETF: Purchase $100 worth of shares of VTI, SCHB, or ITOT.

That’s it! You’re now officially an investor.

Don’t Overthink It

This is exactly how I got started. Even today, most of my investments are in simple index funds and total stock market ETFs like these.

Once you’ve invested your $100, just let it sit there and gradually increase over time. As you become more comfortable with investing, you can continue to add more to your account and keep investing in your chosen ETF. Eventually you can start to explore higher risk investments if you’re comfortable.

You don’t need to understand all the jargon like PE ratios or IPOs. Just take that first step.

Start Now

Try it! Invest just a little and feel what it’s like to be an investor. Over time, you’ll gain confidence and see how easy it is to grow your money without needing to be an expert.